In the JVT video compression standard, both inter and intra coding can be used for interframes. The encoder needs to make a mode decision for each macroblock based on coding efficiency and subjective quality considerations. An inter mode decision is associated with motion estimation, various block sizes and multiple reference picture selection. An intra mode decision is associated with various block types and multiple spatial prediction selections. Thus, mode decisions for interframes pose a large burden for the encoder. Accordingly, what is needed is a new scheme to reduce encoding decision complexity while maintaining coding efficiency.